The first section of this report introduces the U.S. Department of Labor's efforts to focus attention on the evolving demographic, economic, and social trends that are causing pervasive mismatches between workplace needs and work force capabilities. Section 2 outlines trends, changes, and challenges, including demographic and economic trends, adolescent childbearing, high school dropouts, the educationally limited, economic disenfranchisement, homelessness, and drug abuse. Section 3 deals with the mismatch between jobs and workers in the public and private sectors. Section 4 discusses where to find qualified workers. Section 5 identifies what the situation means to the Southeast for public and private employers and for the educational community. Section 6 summarizes the report. Appendix 1 provides 15 data tables. Appendix 2 provides 50 footnotes. Appendix 3 lists 46 references. Appendix 4 contains names and addresses for sources of information in the U.S. Department of Labor, U.S. Department of Education, U.S. Department of Health and Human Services, U.S. Office of Personnel Management, and state officials in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee. (CML)